Rules over bartering and taxes are leaving some employees wondering what to report to Revenue Canada. One of the most common forms of bartering is to offer a motel room to a person in exchange for working the front desk.
Revenue Canada says the work is taxable. But the hours worked can't be used towards filing an employment insurance claim.
There's nothing illegal about bartering for employees. As long as the employer provides the employee with a T-4 slip.
Revenue Canada says workers must report the value of the room as income and pay the appropriate taxes. Doug Shackell is with the tax department, he says there's a downside for someone working under the barter system. " Because there is no actual cash changing hands, the employment would not be insurable nor would it be pensionable. You wouldn't be able to collect employment insurance benefits."
P.E.I.'s labor department says some people who have worked for barter have complained about not being able to use the work to claim E.I. benefits.
Revenue Canada says the rules on working for goods or services instead of cash are clear.